Answer Happy

1. Explain the factors that influence Net Exports (NX) and Net Foreign Investment (NFI) of a country. 2. Explain all the costs of Inflation 3. a. How the supply and demand for money determine the equilibrium price level.? Explain with a graph. b. Graphically explain the effects of a monetary injection by CBO.
Figure 1 Money Supply, Money Demand, and the Equilibrium Price Level Value of Money, (High) 1 Money supply Price Lovele (Low +1.33 Equitrium value of money Equilibrium price level Money de mand (Low of (High) Quantity fixed by the Fed Quantity of Money Figure 2 The Effects of Monetary Injection Price Level, P Value of Money, P (High) 41 (Low) 1. An increase in the money supply. 1.33 2.decreases the value of money. 3.... and Increases the price Money demand (Low) High) O M Quantity of Money